Yahoo Finance Arthur J. Gallagher (AJG) Expands in Texas With CBS Buyout
Arthur J. Gallagher & Co. AJG has acquired CBS Insurance, LLP. The acquisition will help the acquirer expands its footprint in Texas. This marks the first acquisition by AJG in 2023.
Abilene, TX-based CBS Insurance was formed in 1992. This retail insurance broker provides property/casualty and health/benefits coverages across Texas and the surrounding area. Addition of CBS to the acquirer’s portfolio will consolidate its compelling retail insurance and consulting expertise as well as its presence in the region.
Arthur J. Gallagher has an impressive inorganic story with buyouts made in both Brokerage and Risk Management segments. This Zacks Rank #3 (Hold) insurance broker acquired 13 entities in the fourth quarter of 2022 and closed 19 new tuck-in brokerage mergers, contributing about $107 million to estimated annualized revenues in the first nine months of 2022. AJG has a strong merger and acquisition pipeline with about $400 million of revenues, associated with about 50 term sheets either agreed upon or being prepared.
A geographically diversified background, strong domestic and international operations and a compelling product and service portfolio through strategic buyouts should continue to drive AJG’s top line. A solid capital position supports AJG in its growth initiatives and it thus remains focused on continuing its tuck-in mergers and acquisitions. The company expects M&A capacity at more than $4 billion through the end of 2023.
This insurance broker remains focused on long-term growth strategies for delivering organic revenue improvement and pursuing strategic mergers and acquisitions. AJG is focused on productivity improvements and quality enhancements that should help it post sturdy numbers in the future.
Shares of Arthur J. Gallagher have gained 14% in a year, outperforming the industry’s 2.2% increase. The efforts to ramp up its growth profile and capital position should continue to drive the share price higher.
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Stocks to Consider
Some better-ranked stocks from the insurance industry are Allianz SE ALIZY, MGIC Investment Corporation MTG and Kinsale Capital Group, Inc. KNSL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allianz’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 12.96%. In the last six-months period, the insurer has gained 12.2%.
The Zacks Consensus Estimate for ALIZY’s 2023 earnings has moved 0.8% north in the past 30 days. The Zacks Consensus Estimate for Allianz’s 2023 earnings per share indicates year-over-year increases of 47.2%.
MGIC Investment’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 36.34%. In the past six months, MTG stock has gained 1.5%.
The Zacks Consensus Estimate for MTG’s 2023 earnings has moved 0.4% north in the past 30 days.
Kinsale Capital’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 15.16%. In the past six months, KNSL has gained 10.7%.
The Zacks Consensus Estimate for KNSL’s 2023 earnings implies a respective year-over-year rise of 22.4%.
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MGIC Investment Corporation (MTG) : Free Stock Analysis Report
Arthur J. Gallagher & Co. (AJG) : Free Stock Analysis Report
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Allianz SE (ALIZY) : Free Stock Analysis Report
